ExxonMobil Moçambique Limitada has announced its award of approximately $1.1 billion in pre-investment contracts critical to the development of deepwater natural gas assets offshore Cabo Delgado in Area 4, Mozambique.
The contracts cover long-lead upstream equipment and early site Phase 1 construction activities to supply gas to the onshore 18.6-mtpa Rovuma LNG facility, which is also in the pre-FID stage. Together, the two developments are valued at $30–32 billion, representing ExxonMobil’s largest investment globally.
The upstream contracts include engineering, procurement, and manufacturing of subsea production systems, large-bore production valves, and offshore line pipe, according to ExxonMobil’s 17 August news release made on behalf of its Area 4 partners—Eni, Mozambique's Empresa Nacional de Hidrocarbonetos (ENH), China National Petroleum Corp. (CNPC), Korea Gas, and the Abu Dhabi National Oil Company's investment arm XRG.
A Milestone Toward Final Investment
“These contract awards represent another important step forward for the Rovuma LNG project and reflect the strong commitment of the Area 4 co-venturers to responsibly develop Mozambique's world-class natural gas resources,” Johanna Boothey, lead country manager, ExxonMobil Moçambique Limitada, said in the news release.
“By securing critical long-lead equipment, we are positioning the project for efficient execution and supporting the long-term economic potential of this strategic investment for Mozambique.”
OneSubsea UK Ltd. and OneSubsea AS were awarded the largest contract with in-country work to be supported by Aker Solutions Mozambique Limitada for engineering, procurement, fabrication, and manufacturing services related to subsea production systems, controls, and umbilicals. OneSubsea is a joint venture in which SLB holds a 70% state, while Aker Solutions and Subsea7 own 20% and 10%, respectively.
Additional contracts awarded include:
- Advanced Technology Valve S.p.A.—for the engineering, procurement, fabrication, testing, and delivery of large-bore production valves
- Corinth Pipeworks Pipe Industry Single Member S.A.—for the manufacture, coating, testing, preservation, and storage of submerged arc-welded line pipe
- Sumitomo Corporation of America—for the manufacture, coating, testing, preservation, and storage of seamless line pipe
- Zhejiang Jiuli Hi-Tech Metals Co. Ltd.—for the manufacture and supply of mechanically lined pipe, induction bends, weld overlay products, and associated line pipe systems
Back-to-Back Downstream and Upstream Awards
The letting of upstream contracts follows an announcement on 7 August that ExxonMobil has signed a Letter of Intent (LoI) with Saipem S.p.A., leading the SMDC joint venture with McDermott Energy Solutions (UK) Ltd., Korea’s Daewoo Engineering & Construction Co. Ltd., and China Petroleum Engineering & Construction Corp., to launch preliminary engineering and procurement work for Mozambique’s Rovuma LNG onshore facility.
The LoI represents a commitment for $32 million in limited engineering and procurement services while the framework for the project’s engineering, procurement, and construction is finalized, according to ExxonMobil.